MultiCare Faces False Claims Act Allegations

The United States and State of Washington have filed a complaint in intervention against MultiCare Health System alleging that MultiCare violated the False Claims Act, Washington State False Claims Act, and knowingly endangered patient safety.

MultiCare is a Tacoma, Washington-based hospital and healthcare system that owns and operates MultiCare Deaconess Hospital and MultiCare Rockwood Clinic.

The complaint alleges that MultiCare knowingly caused the submission of false and fraudulent claims to Medicare, Washington Medicaid, and other federal health care programs. It claims that the false claims were for surgical procedures performed by neurosurgeon Jason A. Dreyer, D.O. between 2019 and 2021.

The complaint asserts that there were “red flags, warnings, and specific evidence of Dr. Dreyer’s dangerous and fraudulent behavior.” All of which it asserts was “known to MultiCare while hiring, credentialing, employing, and supervising Dr. Dreyer.”

There are a number of specific examples of Dr. Dreyer’s purported behavior that are included in the complaint. First, the State is asserting that “Dr. Dreyer had previously been suspended and placed on extended administrative leave by, and resigned from, Providence St. Mary’s Medical Center” and that this was supposedly based on “concerns that Dr. Dreyer had over-operated and performed medically unnecessary surgeries.”

Next, prosecutors are claiming that when MultiCare employed Dr. Dreyer he was under investigation by the Washington State Department of Health, for “practicing below medical standards of care.” It is also asserted that when MultiCare employed Dr. Dreyer, he was under federal investigation for “fraudulent billing supported by falsified diagnoses at Providence St. Mary.” Additionally, the complaint purports that “multiple MultiCare medical providers with direct knowledge of Dr. Dreyer’s spinal surgeries at MultiCare had internally raised concerns to MultiCare that Dr. Dreyer was conducting medically unnecessary spinal surgeries and endangering patients.”

In a press release for the U.S. Attorney’s Office, Eastern District of Washington, United States Attorney Vanessa Waldref said, “As alleged in the Complaint, MultiCare was aware of serious concerns that Dr. Dreyer was putting patients in danger.”

Waldref continued, “The Complaint alleges that MultiCare nonetheless made the decision to allow him to treat and operate on patients, even after it became aware of the federal investigation. This is an egregious breach of the public trust.”

For OTW’s coverage of past litigation involving Dr. Dreyer, see “Lawsuit Alleges Neurosurgeons Performed Unnecessary Procedures.”